Financial Statement Analysis 3

Financial Statement Analysis 3

• What a valuation technology looks like
• What a valuation model is and how it differs from an asset pricing model
• How a valuation model provides the architecture for fundamental analysis
• The practical steps involved in fundamental analysis
• How the financial statements are involved in fundamental analysis
• How one converts a forecast to a valuation
• The difference between valuing terminal investments and going concern investments (like business firms)
• The dividend irrelevance concept
• Why financing transactions do not generate value, except in particular circumstances
• Why the focus of value creation is on the investing and operating activities of a firm
• How the method of comparable works (or does not work)
• How asset-based valuation works (or does not work)
• How multiple screening strategies work (or do not work)
• How fundamental analysis differs from screening